In the best-case scenario, if you have a deposit saved of 20% or more of the property’s value, plus additional funds to cover stamp duty and legal fees, then you can avoid having to pay for Lenders Mortgage Insurance (which is insurance to cover the bank, not you).

If this is not the case (which is more common than not), that’s ok! There are still many options available to you.

Generally, lenders like to see genuine savings (i.e. money in the bank for at least 3 months) of at least 5% of the property value accumulated over this period. Some exceptions exist (such as having a family guarantor or a rental history showing your capacity to repay a loan).

However, if you find yourself with less than 5% savings, then it’s best to chat with one of our experienced team to see what options are available to you, now & in the future.

Lender turnaround times can vary depending on the volume of applications they receive at any given time. Approval timeframes generally range between 1–15 business days, so it is essential to confirm finance due dates and settlement timeframes to ensure your loan is with a lender that can meet these deadlines. We work closely with your solicitor & agent to manage this timeline effectively.

A pre-approval is when a lender approves your loan subject to certain conditions. The two main conditions generally are that a signed contract of sale is provided and a satisfactory valuation completed on the property.

Conditional approval is valid for up to 90 days; however, in most circumstances, this can be extended upon providing updated financial information and no change to circumstances.

It is important to note that formal approval needs to be obtained within this timeframe, so a week or two must be allowed for the lender to complete their property valuation and finalise your formal approval.

The most significant advantage of a broker over a bank is choice. When you talk to a broker, you are sitting in front of a huge range of lenders and products rather than visiting just one banker who only has access to their lender’s products.

A mortgage broker works for you, not the bank or its shareholders, so your best interests will always come first. This duty to act in your best interests is required by law so you can rest easy knowing that you are in good hands. Brokers also have the experience and knowledge to best negotiate with lenders on your behalf to arrange a loan most suited to your goals and objectives.

In addition to completing the research and negotiating with lenders, brokers also manage the application process. All the confusing paperwork is completed for you, and you don’t have to worry about following up with the bank and waiting or chasing for hours on hold.

Once your loan is approved and settled, your relationship remains with your broker. We are always here to help and will continue to review your loan to ensure it is still working best for you.

Brokers are paid by a commission from the lender only once your loan settles. The amount of commission will vary depending on the size of the loan & balance of your 'offset' account.

Please note that this commission is not added to your loan or interest rate & you will receive the same rate and fee structure as if you went directly to the bank. Given the above, a broker’s services are free of charge to you.

Most clients are also unaware that if your loan is refinanced or repaid in full, within 12–24 months of settlement, the lender will claw back all or a portion of the broker’s commission.

That is why it is always important to discuss any changes to your loan/situation with your broker so they can continue to provide their services at no extra cost.